Can investing in real estate secure retirement? Some analysts believe that it is a good investment because it is a most likely predictable and steady income generating venture.
According to Forbes, investors love real estate for various reasons. First and foremost with real estate there is a higher chance that your invested principal is protected while a sure and steady income is foreseeable. When you invest in real estate chances or going bankrupt are relatively low.
Moreover according to Forbes, rental income from type of real estate is the best sources of passive income. This works for retirees who don't see themselves in the future actively involved in managing a property. With rental property, the risk is relatively lower and cash in the form of payments come in frequently.
On the other hand, According to Next Avenue, it is important to seek the services of an adviser when investing in real estate. The same is true even for investment with relatively low risks such as investing in real estate for retirement.
According to Forbes, "Currently, real estate investments in emerging, secondary, or tertiary markets can provide an 8 percent return if done correctly."
A Registered Investment Adviser can help you determine if you would still get that eight percent return annually on your money after paying fees.
Lastly, when making an investment in real estate for retirement, be sure not to overlook the planning for taxes. This may get complicated so don't forego the help of a CPA on this aspect. Even a low-risk investment such as investing in rental property for retirement can get messy when an investor does not seek good advice from a trusty investment adviser or tax adviser.
It is worth remembering that the best investment is the one with the guaranteed return and the lowest, if not zero, risk.
Read more: https://www.forbes.com/sites/nextavenue/2015/11/04/investing-in-real-estate-for-retirement-income/
